The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Kenco has introduced a new flavour to its Millicano coffee range: Kenco Cadbury Caramel Latte. This launch comes as part of the company's ongoing strategy to capitalise on the growing demand for in-home frothy coffee options, which has seen an 8% year-on-year increase in sales.

The Cadbury Caramel Latte is now available in select Morrisons stores and will be introduced to Asda locations starting September 6, with a recommended retail price of £5.75.

This addition follows the success of the Kenco Millicano range, which has generated substantial sales since its launch in May 2024, including the award-winning Kenco Millicano Cadbury Mocha.

The in-home frothy coffee category, which Kenco's speciality range significantly contributes to, has experienced notable growth. Recent data indicates that Kenco’s speciality products account for 27.4% of this category, reflecting a 15.6% increase in value over the past year, largely attributed to the popularity of Kenco Millicano Tins.

Consumer behaviour is shifting, with an increasing number of individuals enjoying coffee beyond traditional morning consumption. This trend is particularly pronounced in the frothy coffee segment, which is seeing more afternoon and evening consumption occasions.

The introduction of new flavours like the Cadbury Caramel Latte allows retailers to cater to these changing preferences, potentially driving further growth in the category.

Kenco's partnership with Cadbury, the leading chocolate brand in the UK, aims to attract younger consumers who are inclined toward trying innovative coffee flavours.

Flavoured coffee now represents 39% of the speciality coffee market, underscoring the demand for indulgent options. The new latte offers consumers the flexibility to customise their coffee experience, enhancing its appeal as a convenient, barista-style beverage for home preparation.

Maria Kabalyk, head of categoryand shopper at parent company Jacobs Douwe Egberts Peet’s, highlighted the importance of delivering novel products to the market: "This launch builds on our strategy to deliver excitement and category firsts to in-home frothy coffees. Our new Cadbury Caramel Latte continues our successful partnership with Cadbury, to deliver a highly sought-after flavour in a customisable format, making it perfect for a moment of indulgence at any time of day.”

As Kenco continues to expand its Millicano range, the introduction of the Cadbury Caramel Latte reflects broader trends in the coffee industry, where innovation and consumer preferences for indulgent, customisable beverages are driving growth.